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RBI: Rs 11 Crore Fine Thwacks On 4 Banks For Non- Compliance In Swift Operation

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| March 5 , 2019 , 17:38 IST

Reserve Bank of India imposed a total monetary fine of Rs 11 crore on four banks – Karnataka bank, United bank of India, IOB,  Karur Vysya bank, for non- compliance in swift operations.

Certainly, RBI imposed Rs of 4 crore penalty on Karnataka Bank, 3 crores on United Bank and Indian Overseas bank respectively.

The Reserve Bank of India has levied an aggregate penalty of Rs 40 million on the bank for delayed implementation of four of the Swift related operational controls, Karnataka bank said in a regulatory filing.

"The exchanges are hereby informed that Reserve Bank of India, has imposed an aggregate penalty of Rs 30 million on the Bank to be deposited within 14 days, for non-compliance with, and contraventions of, directions contained in the RBI circular on time-bound implementation and strengthening of SWIFT-related operational controls," United bank said in a separate filing.

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Another, state-owned lender Indian Overseas Bank said it has been penalized with fine of Rs 3 million for non-compliance with the directions issued on February 20, 2018, by the RBI.

"The Bank has taken necessary measures to strengthen internal controls to avoid such recurrence," IOB said.

Karur Vysya said that the RBI has imposed a monetary penalty of Rs 1 crore on the bank for non-compliance with the directions issued on Swift operations.

The RBI circular relates to 'Time-bound implementation and strengthening of Swift-related operational controls.'

Swift is the global messaging software used for transactions by the financial entities. The massive Rs 14,000 crore fraud at the PNB was a case of misuse of this messaging software.

Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kind of their transactions.

Whereas, Fine of Rs 3 crore was imposed on Union bank, Rs 2 crore on Dena bank, and Rs 1 crore each on IDBI and the SBI.

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